The delinquency rate on commercial mortgage-backed securities spiked 51 basis points in July to an all-time high of 9.88%, according to analytics provider Trepp. The new record comes after two consecutive monthly drops, a first for the market since 2008. Spreads on new deals were tightening, new issuance reached the market and special servicers modified more loans this spring as CMBS 2.0 began to take shape. This all changed in June. Spreads widened and new issuers became tentative, Trepp analysts said. Then, in July delinquencies returned to new heights. One year ago, the delinquency rate was more than a percentage point lower at 8.71%. "Much of the positive momentum that had been surrounding the CMBS market recently has now all but vanished in the past few weeks," Trepp said. Analysts pointed to the way special servicers reported new data. Trepp flags a loan as delinquent once it sees a servicer pursuing a foreclosure. There had always been a small percentage of loans that were current but heading toward foreclosure. Trepp said in June, these loans accounted for about 20 bps of the delinquency rate. But in July, servicers decided to assign a "foreclosure" to many more loans that were also on track for modification. After this reclassification, the delinquency rate jumped 46 bps. The percentage of loans in 60-day foreclosure, REO or nonperforming status reached 9.14% in July, up 39 bps from the previous month. Write to Jon Prior. Follow him on Twitter @JonAPrior.